Cancelling the PPI & refund

dig4victory

Hi

We recently contacted our loan company to request cancelling the PPI policy and requesting a partial refund of instalments paid.

We got a letter back saying we can certainly cancell and there will be an amount due back to us - but they have said that this money will be credited against the remaining loan amount.

Does anyone know if we are entitled to have the money back as a cheque to us or is it mandatory for this refund to be offset against the loan, as they want to do.

I have been through the PPI paperwork and can't find any more info regarding this, either way.

Thanks

di3004

dig4victory wrote: »

Hi

We recently contacted our loan company to request cancelling the PPI policy and requesting a partial refund of instalments paid.

We got a letter back saying we can certainly cancell and there will be an amount due back to us - but they have said that this money will be credited against the remaining loan amount.

Does anyone know if we are entitled to have the money back as a cheque to us or is it mandatory for this refund to be offset against the loan, as they want to do.

I have been through the PPI paperwork and can't find any more info regarding this, either way.

Thanks

Hello there

If this was mis sold to you for some reason, then I would be writing a letter to reclaim the whole lot of PPI back you have paid to date with the interest.

However, if there are no arrears then you are entitled to have the refund paid directly to you.
I take it you just cancelled and they are refunding so much of what you recently paid.

Was you mis sold the policy at all?

I would check this out for more information with the guidelines of reclaiming here and see what you think, good luck.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Check the above link out, and if you require any help from there give us a yell.

Di

dig4victory

I don't think we were necessarily missold - at the time my husband was working on a different pay structure so we could have been in trouble to keep payments going if ill or redundant etc.

Yes, we are just cancelling the PPI with no arrears or defaults.

Are we right in thinking that the PPI and the loan agreement are completely separate agreements just linked for the sake of the arrangement? - if they are, surely it's not for Firstplus to say who they are going to credit any refund to?

Thanks for for link.

marshallka

dig4victory wrote: »

I don't think we were necessarily missold - at the time my husband was working on a different pay structure so we could have been in trouble to keep payments going if ill or redundant etc.

Yes, we are just cancelling the PPI with no arrears or defaults.

Are we right in thinking that the PPI and the loan agreement are completely separate agreements just linked for the sake of the arrangement? - if they are, surely it's not for Firstplus to say who they are going to credit any refund to?

Thanks for for link.

When you have a single premium insurance policy lumped on the loan it is actually another loan to pay the premium in one lump sum. This then means that it is treated as a loan just the same as your original loan and incurs interest in the same way. WHen you cancel the PPI you are only cancelling the policy and they then give you a rebate against the insurance policy (WITHOUT INTEREST) so they are still charging you the interest on the policy but refunding some of the policy cost back to you. This means that your repayments will only reduce by a minimum amount. They call it often a pro rata rebate and this is only against the remaining PPI (ie it usually only covers you for 5 years BUT you pay for it over the whole term of your loan- if you have used it for 3 years then they usually only give you about 78% of the remaining PPI policy cost back BUT do not incude interest). Very unfair.

How the policy works should have been explained to you.